Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

‘MaltaFiles’ firm Credence fined €261,000 over AML shortcomings

‘MaltaFiles’ firm Credence fined €261,000 over AML shortcomings

Corporate services provider Credence, which featured in an extensive European Investigation Collaborations exposé on tax avoidance in Malta, has been fined €261,000 by the Financial Investigation Analysis Unit for breaches of various money laundering obligations.
Credence Corporate Advisory Services is a Maltese law firm which featured in stories on the the existence of Turkish president Recep Tayyip Erdoğan’s family’s offshore network, revealed by The Black Sea as part of its reporting on the #MaltaFiles; and for providing corporate services to Russian billionaire Oleg Boyko’s fast loan company, to save millions in tax by remitting profits to Malta.

The FIAU said it found shortcomings in the company’s obligations, specifically failing to identify an ultimate beneficial owner (“UBO”) and other details pertaining to the UBO’s agent; and in six files classified as ‘high’ risk, only three files had had enhanced due dilegence performed.

In another file, it resulted that the client had connections with Iran and Panama, both of which appear on the FATF’s list of high risk and other monitored jurisdictions. Although the company did collect additional documentation on this client and even appointed two in-house directors, these measures were not deemed sufficient as the nature of the activities involved demanded a higher level of ongoing monitoring and a better understanding of the economic rationale behind the transactions taking place.

In another file, apart from the fact that the UBO of the entity was featured in adverse media, the company failed to take action to duly understand the activity of the company and mitigate the risks associated with the same.

The FIAU said Credence had failed to gather essential information on why a $30 million loan was necessitated for the company in question, and the nature of the end-customers who recieved the loans, and howthe client would be generating a sufficient return to meet the eventual repayment of the loan.

It also transpired that the UBO of one of the clients was a Politically Exposed Person (“PEP”) who had also featured in adverse media in relation to bribery and corruption. Although Credence as in-house director was a signatory on the client’s bank account, this measure was not considered as sufficient to mitigate the risks of the customer. “No senior management approval was sought despite the UBO being a PEP, and that no supporting documentation in relation to the PEP’s source of wealth and funds were obtained.”

Credence failed to carry out EDD on two high-risk customers, one involved in the mining of precious metals and sale of chemicals, the other in renewable energy; they had no plausible explanation for a $24 million loan and the absorption of another €15.9 million loan.

In another file, the FIAU called to attention a number of loan agreements with Panamanian companies for capital expenditure to a Maltese company that was Credence’s client. Lastly, in another file, the Company did not collect source of wealth information on the settlors of the trust, despite these being classified as PEPs.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
×